- Apple stock rebounds on Monday to close up 2.2%.
- AAPL is now poised for new record highs and a push to $200.
- Apple catches a strong rating and price target from Keybanc.
Apple (AAPL) stock had initially been spoken of as a safe haven bet during the market turmoil last week as investors focused on the large pool of cash and its cash generation making it a quasi-defensive name. Usually, defensive names take the shape of essential items like food stocks, but Apple is now seen as such a tech bellwether that its ability to ride out any economic slowdowns is likely better than most other companies. Monday though saw the risk aversion theme fade as panic selling over the emergence of Omicron appears to be fading.
As more data filters through from numerous scientific studies into the variant, it appears it may be more transmissible but crucially weaker than earlier variants. Investors are now focusing on this being the last of the covid winters. Risk stocks have yet to catch up but are likely to do so on Tuesday. Tech stocks though rallied back on Monday, and that helped AAPL power to $165 and set the stock up for more record highs this week.
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Apple (AAPL) chart, 15-minute
Apple (AAPL) stock news
Keybanc Capital Markets analyst Brandon Nispel initiated coverage on Apple with an overweight rating on Tuesday, and he slaps a $191 price target on the shares.
Last week we had some rumours of a possible slowdown in iPhone demand. Bloomberg reported that Apple had told suppliers that demand was not picking up as expected over the holiday period. Apple has had chip supply issues this year, and consumers are waiting for these supply issues to be corrected before ordering.
However, Keybanc still sees demand as being overly strong for new 5G iPhones, a comment backed up by Wedbush analyst Daniel Ives recently. Keybanc also notes the potential for strong dividends and share repurchases due to the aforementioned strong cash flow generation.
Apple (AAPL) stock forecast
The recent sell-off did break the 9-day moving average but crucially held the 21-day line. It also held above the previous high at $157.26. This has kept Apple bullish technically in the medium term, and now a push above $170 and higher beckons this week. The Moving Average Convergence Divergence (MACD), stochastics and the Relative Strength Index (RSI) all are bullish. Apple is already up in Tuesday's premarket session. Expect more gains and a possible tilt at $200!
AAPL 1-day chart
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